Just a quick follow up to the indices charts I posted a couple of weekends ago. The only local 2 that looked bullish (energy and metals and mining) have both broke to the downside in the days since. XJO and small ords have performed as expected (down). Support was found today in Australia at the initial target of 4700 ish. The last 4mths buying in Australia is now out of the money in a quick 2 week period. Ouch!
Will we bounce?
The answer will come from US in the next few nights, IF S&P500 fails the 1590-1600 level. I would expect to see capitulation with multi night triple digit losses. I would expect to see XSO and XJO at 4200ish quicksmart.
I don't want to make this sound to dramatic but all global market charts that I follow are at an incredibly pivotal point. If the move is to the down side in the US the selling we have seen locally in the last few weeks is just the entrée and the main course is about to get dished up.
Keep on your toes is all I want to get across, the next couple of weeks COULD get very nasty, and present even better opportunities to those that remain nimble.
Personally I got stopped out of the 3 'safer' longs I recently entered and am now sitting on 95%cash. had mixed success in the last 2 weeks with a 4x 2-3 day trades, work as usual has been the Achilles heel but may be this time for the better.
